Stage Stores Inc. (SSI, Financial) filed Quarterly Report for the period ended 2009-10-31.
Stage Stores operates retail stores offering moderately priced, nationally recognized brand name apparel, accessories, cosmetics and footwear for the entire family in small towns and communities located primarily throughout the south central United States. Stage Stores Inc. has a market cap of $460.8 million; its shares were traded at around $12.1 with a P/E ratio of 17.3 and P/S ratio of 0.3. The dividend yield of Stage Stores Inc. stocks is 1.7%. Stage Stores Inc. had an annual average earning growth of 5.9% over the past 5 years.
Net interest expense was $1.1 million in the current year third quarter compared to $1.4 million in the prior year third quarter. Interest expense is primarily comprised of interest on borrowings under the Revolving Credit Facility (see “Liquidity and Capital Resources”), related letters of credit and commitment fees, amortization of debt issue costs, interest on finance lease obligations and equipment financing notes. The decrease in interest expense is primarily due to having no borrowings on the Company s Revolving Credit Facility in the current year third quarter. The Company had a weighted average Revolving Credit Facility balance of $22.5 million for the prior year third quarter. The weighted average balance on the Company s equipment financing notes outstanding was $42.8 million in the current year third quarter as compared to $45.0 million in the prior year third quarter.
As a result of the foregoing, the Company had a net loss of $7.3 million, or a net loss of $0.19 per diluted share, for the current year third quarter as compared to net loss of $102.8 million for the prior year third quarter. The prior year third quarter net loss included the non-cash goodwill impairment charge of $95.4 million, which is non-deductible for income tax purposes. Excluding the goodwill impairment charge, the Company s net loss for the prior year third quarter would have been $7.4 million, or a net loss of $0.19 per diluted share.
Sales for the thirty-nine weeks ended October 31, 2009 (the “current year”) decreased by 5.6% to $1,000.2 million from $1,060.0 million for the thirty-nine weeks ended November 1, 2008 (the “prior year”). Comparable store sales, which are sales in stores that are open for at least 14 full months prior to the reporting period, decreased by 8.4% in the current year as compared to a 5.6% decrease in the prior year. In the current year, new stores that were not in the comparable store base contributed sales of $34.8 million. These sales were partially offset by a loss of $7.9 million in sales from closed stores that were in operation during the prior year.
Net interest expense was $3.4 million in the current year compared to $3.9 million in the prior year. Interest expense is primarily comprised of interest on borrowings under the Revolving Credit Facility (see “Liquidity and Capital Resources”), related letters of credit and commitment fees, amortization of debt issue costs, interest on finance lease obligations and equipment financing notes. The decrease in interest expense is primarily due to lower Revolving Credit Facility borrowings in the current year as compared to the prior year. The Company had a current year weighted average Revolving Credit facility balance of $0.7 million as compared to $36 million for the prior year. The weighted average amount of equipment financing notes outstanding was $45.5 million in the current year as compared to $46.5 million in the prior year.
As a result of the foregoing, the Company had a net income of $0.9 million, or a net income of $0.02 per diluted share, for the current year as compared to net loss of $90.9 million for the prior year. The prior year net loss included the non-cash goodwill impairment charge of $95.4 million, which is non-deductible for income tax purposes. Excluding the goodwill impairment charge, the Company s net income for the prior year would have been $4.5 million, or a net income of $0.12 per diluted share.
Read the The complete ReportSSI is in the portfolios of John Keeley of Keeley Fund Management.
Stage Stores operates retail stores offering moderately priced, nationally recognized brand name apparel, accessories, cosmetics and footwear for the entire family in small towns and communities located primarily throughout the south central United States. Stage Stores Inc. has a market cap of $460.8 million; its shares were traded at around $12.1 with a P/E ratio of 17.3 and P/S ratio of 0.3. The dividend yield of Stage Stores Inc. stocks is 1.7%. Stage Stores Inc. had an annual average earning growth of 5.9% over the past 5 years.
Highlight of Business Operations:
Sales for the thirteen weeks ended October 31, 2009 (the “current year third quarter”) decreased 2.6% to $324.9 million from $333.8 million for the thirteen weeks ended November 1, 2008 (the “prior year third quarter”). Comparable store sales, which are sales in stores that are open for at least 14 full months prior to the reporting period, decreased by 5.4% in the current year third quarter as compared to a 10.3% decrease in the prior year third quarter. In the current year third quarter, new stores that were not in the comparable store base contributed sales of $11.4 million. These sales were partially offset by a loss of $2.8 million in sales from closed stores that were in operation during the prior year third quarter.Net interest expense was $1.1 million in the current year third quarter compared to $1.4 million in the prior year third quarter. Interest expense is primarily comprised of interest on borrowings under the Revolving Credit Facility (see “Liquidity and Capital Resources”), related letters of credit and commitment fees, amortization of debt issue costs, interest on finance lease obligations and equipment financing notes. The decrease in interest expense is primarily due to having no borrowings on the Company s Revolving Credit Facility in the current year third quarter. The Company had a weighted average Revolving Credit Facility balance of $22.5 million for the prior year third quarter. The weighted average balance on the Company s equipment financing notes outstanding was $42.8 million in the current year third quarter as compared to $45.0 million in the prior year third quarter.
As a result of the foregoing, the Company had a net loss of $7.3 million, or a net loss of $0.19 per diluted share, for the current year third quarter as compared to net loss of $102.8 million for the prior year third quarter. The prior year third quarter net loss included the non-cash goodwill impairment charge of $95.4 million, which is non-deductible for income tax purposes. Excluding the goodwill impairment charge, the Company s net loss for the prior year third quarter would have been $7.4 million, or a net loss of $0.19 per diluted share.
Sales for the thirty-nine weeks ended October 31, 2009 (the “current year”) decreased by 5.6% to $1,000.2 million from $1,060.0 million for the thirty-nine weeks ended November 1, 2008 (the “prior year”). Comparable store sales, which are sales in stores that are open for at least 14 full months prior to the reporting period, decreased by 8.4% in the current year as compared to a 5.6% decrease in the prior year. In the current year, new stores that were not in the comparable store base contributed sales of $34.8 million. These sales were partially offset by a loss of $7.9 million in sales from closed stores that were in operation during the prior year.
Net interest expense was $3.4 million in the current year compared to $3.9 million in the prior year. Interest expense is primarily comprised of interest on borrowings under the Revolving Credit Facility (see “Liquidity and Capital Resources”), related letters of credit and commitment fees, amortization of debt issue costs, interest on finance lease obligations and equipment financing notes. The decrease in interest expense is primarily due to lower Revolving Credit Facility borrowings in the current year as compared to the prior year. The Company had a current year weighted average Revolving Credit facility balance of $0.7 million as compared to $36 million for the prior year. The weighted average amount of equipment financing notes outstanding was $45.5 million in the current year as compared to $46.5 million in the prior year.
As a result of the foregoing, the Company had a net income of $0.9 million, or a net income of $0.02 per diluted share, for the current year as compared to net loss of $90.9 million for the prior year. The prior year net loss included the non-cash goodwill impairment charge of $95.4 million, which is non-deductible for income tax purposes. Excluding the goodwill impairment charge, the Company s net income for the prior year would have been $4.5 million, or a net income of $0.12 per diluted share.
Read the The complete ReportSSI is in the portfolios of John Keeley of Keeley Fund Management.
